The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PharMerica met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins shrank, net margins shrank.
PharMerica notched revenue of $433.2 million. The eight analysts polled by S&P Capital IQ wanted to see sales of $432.4 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $495.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.33. The nine earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. GAAP EPS of $0.12 for Q4 were 54% lower than the prior-year quarter's $0.26 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.5%, 280 basis points better than the prior-year quarter. Operating margin was 3.4%, 60 basis points worse than the prior-year quarter. Net margin was 0.9%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $442.6 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $1.74 billion. The average EPS estimate is $1.32.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 121 members out of 126 rating the stock outperform, and five members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give PharMerica a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PharMerica is outperform, with an average price target of $15.50.
Is PharMerica the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.
- Add PharMerica to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.